The aim of this paper is to provide an extension of a technique recently introduced by Pyatt and Round (2006) to decompose each element of the ‘global multiplier matrix’ in ‘microscopic detail’ in order to capture the linkages between each household groups’ income and the exogenously injected income of other accounts. The methodology we propose allows dividing the impact of exogenous injections into four different effects: directdirect effect (D-D); direct-indirect effect (D-I); indirect-direct effect (I-D) and indirect-indirect effect (I-I). Results using the 2000 Vietnamese SAM show that the highest direct effects on the income of household groups are related to exogenous injections into the agricultural sector, while the highest indirect effects result from investing in other agriculture-related sectors such as, for example, food processing. Policy interventions focusing on the agricultural sector and on rural households will thus have the greatest effect on reducing the level of income inequality.

Civardi, M., Pansini, R., Targetti Lenti, R. (2010). Extensions to the multiplier decomposition approach in a SAM framework: An application to Vietnam. ECONOMIC SYSTEMS RESEARCH, 22(2), 111-128 [10.1080/09535314.2010.483224].

Extensions to the multiplier decomposition approach in a SAM framework: An application to Vietnam

CIVARDI, MARISA;Pansini, RV;
2010

Abstract

The aim of this paper is to provide an extension of a technique recently introduced by Pyatt and Round (2006) to decompose each element of the ‘global multiplier matrix’ in ‘microscopic detail’ in order to capture the linkages between each household groups’ income and the exogenously injected income of other accounts. The methodology we propose allows dividing the impact of exogenous injections into four different effects: directdirect effect (D-D); direct-indirect effect (D-I); indirect-direct effect (I-D) and indirect-indirect effect (I-I). Results using the 2000 Vietnamese SAM show that the highest direct effects on the income of household groups are related to exogenous injections into the agricultural sector, while the highest indirect effects result from investing in other agriculture-related sectors such as, for example, food processing. Policy interventions focusing on the agricultural sector and on rural households will thus have the greatest effect on reducing the level of income inequality.
Articolo in rivista - Articolo scientifico
Income distribution; Inequality; Multiplier decomposition; Social Accounting Matrix;
Income distribution; Social Accounting Matrix; Multiplier decomposition; Inequality
English
2010
22
2
111
128
none
Civardi, M., Pansini, R., Targetti Lenti, R. (2010). Extensions to the multiplier decomposition approach in a SAM framework: An application to Vietnam. ECONOMIC SYSTEMS RESEARCH, 22(2), 111-128 [10.1080/09535314.2010.483224].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/20366
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